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The key to the future development of plant protection machine: to find a balance between direct sales and agency distribution
[ China Agricultural Machinery Industry News ] At the moment, agricultural production automation has become the trend of the times. In the field of plant protection machinery, plant protection drones have gradually emerged due to their high drug utilization rate, reduced environmental pollution, adaptation to a variety of crops and a significant reduction in labor costs. In addition to aerial photography, the power of drones is gradually deepening into the plant protection industry. After two years of encirclement and development, the plant protection drone has gradually cultivated the habits of farmers, and the drones in the industry are gradually developing.
The key to the future development of plant protection machine: to find a balance between direct sales and agency distribution
Direct marketing and agency distribution are the two main modes of market expansion for domestic agricultural plant protection drones. Unlike consumer-grade aerial drones, plant protection machines have higher requirements for operator professionalism. Therefore, the direct-operated model lays a good foundation for early brand promotion. The agency distribution model can spread the market volume faster.
For the brand, how to find a balance between the two modes is the key to the future development of the plant protection machine.
From direct to agent
In March of this year, at the company's spring conference, Fei Fei founder Peng Bin announced that the city's agent distributors can book new products through the fly. In October last year, Feifei officially adopted the agency model, and until then, the direct team model has been used to help farmers spray pesticides.
“The purpose of establishing a direct service team at the beginning of the flight was to verify the effectiveness of the plant protection and to explore the application scenarios and business models of the plant protection drone in the farmland,†said the co-founder and CMO Gong Yuqin of the Feifei.
Change is a rapid change from the market.
In 2015, Dajiang launched the plant protection drone MG-1, a brand built in the field of aerial photography, which allowed Dajiang to quickly occupy market share.
According to the data provided by DJI, the sales volume of MG-1 in Mainland China was 2,500 units in 2016, accounting for more than 60% of the total number of domestic plant protection UAVs in China; in 2016, the new sales volume, MG-1 Agricultural plant protection machines can account for more than 70% of the industry's overall sales.
Because of the consistent distribution model with aerial drones, MG-1 quickly opened the plant protection drone market through the promotion of local distributors. The agent sells the whole machine to the plant protection team, and Dajiang only needs to provide supporting services for the agent and the plant protection team.
It is understood that the domestic plant protection market is huge, and the annual plant protection demand of 2 billion mu of cultivated land in the country exceeds 9 billion mu. However, due to the high price of the plant protection machine and the fact that most of the farmland is too scattered, the farmers themselves have little demand for the plant protection machine. The main customer group of distributors is the mobile plant protection team.
As of press time, the number of plant protection teams registered to purchase plant protection drones on the DJI platform has reached 279, increasing by more than 100 in less than one year.
Gao Xiuyuan, the sales manager of Dajiang Agricultural Machinery, told the financial reporter that for these registered teams, in addition to providing training and technical support services, Dajiang also connects the needs of farmers with the work of the plant protection team through the Internet platform. The plant protection team can Order through the platform.
Relying on the dealer team around the country, Dajiang quickly entered the plant protection market. For the company, the direct service can bring stable income, but it does not dominate the market share. “Because of the differences in land transfer rates, the scale of farmland varies greatly and is extremely fragmented, and direct service is difficult to meet the needs of different plant protection needs.†Gong Yuqin told financial reporters.
Aware of this, Feifei decided to open drones and technical solutions to partners around the world to connect equipment, operations teams, farmers and farmland via the mobile Internet. It is understood that there are currently more than 300 dealers in the company, and the number of direct teams is maintained at 800.
“Let the partners have better equipment and enable the farmers to get better service, so that the drones can have a bigger market. But these three points cannot be achieved through simple sales.†Gong Yuqin said.
Service and machine integration
Compared with the sale of the whole machine, the plant protection service has a larger market. Depending on the crop, a plant protection team can earn more than 10,000 yuan a day, but this planting service model is not suitable for drone companies.
On the one hand, the huge number of teams imposes a burden on drone companies; on the other hand, it is difficult for downstream services to establish brand influence.
“The mission of the Extreme Flying Direct team has shifted from the promotion of plant protection drones to the development of plant protection industry standards.†Gong Yuqin told reporters.
For the plant protection industry itself, there are also more upstream and downstream integration trends. For drone manufacturers, they also provide more supporting plant protection services while selling machines. “Consumer drones deliver a product, and industry and drone users need a complete solution that includes hardware, software, people, services, and even a set of internal management methods for drones. Workflow,†said Xu Huabin, head of Dali’s innovation industry application.
Under this trend, there will be more integration between selling machines and selling services, and the brand's direct business will be more targeted. “Gianfei’s direct service team will continue to expand and establish operational centers and support centers in different regions to provide training, support and scale-based collaborative services for partners. In terms of business, the service industry itself is diverse. For those customers who have high service quality requirements, the direct sales team can provide them with customized plant protection services." Gong Yuqin said.